We have been looking for the
SPX to test its 50 DMA, which currently sits at 1604.
Specifically, on Monday wewrote:

“…as we look ahead into June, we think the odds of an 8th
consecutive monthly gain become slim. That is not to say we are
expecting a major downturn, but we think a test of the still
rising 50 DMA around 1600 should not be surprising. 1597-1600
also represents the April highs. Below that, the 1576 area will
likely be defended as it was prior resistance from October 2007,
and represents a major multi-year breakout level.”

On Wednesday, the SPX got within 4 handles of its 50 DMA. Of
course the problem now is that everyone is looking for that. We
know the old axiom: “when everyone is thinking the same thing,
nobody’s thinking”. Therefore, we want to keep an open mind about
a possible push below 1600.